Silver is around 80% correlated with gold but carries a beta of 1.4 times compared with the yellow metal, making it 1.4 times more volatile, according to an analysis published by MoneyWeek. One of HSBC's gold traders once described silver as "gold on crack".
The gold-to-silver ratio currently stands at 64, meaning an ounce of gold buys 66 ounces of silver. The 30-year average for the ratio is 68. The lowest ratio in recent years, at 46, occurred on 27 January 2026, the day before prices peaked, when gold reached $5,417 per ounce and silver hit $117.
Despite falling demand from photography and solar applications, the silver market remains in deficit of approximately 46 million ounces, according to the Silver Institute, having peaked at 254 million ounces in 2022. Silver is generally a by-product of mining other metals, which has limited the producer response to higher prices.
Silver is used in photography, photovoltaic cells, electronics, telescope mirrors, filters and wound dressings. It is the best electrical and thermal conductor among metals and the most reflective metal in visible light.
Gold is down 20% since its January 2026 high, gold miners are down 13% and silver is down 43%, according to the analysis. The author, who holds silver through the iShares Physical Silver ETC, said he turned bullish again in August as the correction appeared to be over.